If the Secretary has not certified that the State has satisfied the conditions under section
1203 of this title within one year after the date of delivery of the report referred to in section
1204
(a) of this title, the Secretary may dispose of the rail properties of the Alaska Railroad. Any disposal under this section shall give preference to a buyer or transferee who will continue to operate rail service, except that—
Any disposal under this section shall be subject to valid existing rights.